New FDI ruling in UAE encourages new industry and foreign investment
The recently introduced Foreign Direct Investment Law (Federal Law 19 of 2018) is an epoch making event in UAE’s economic history. As per the new law, foreign shareholders can now have upto 100% ownership of companies in specified sectors. The FDI law provides for a positive list and a negative list which is nothing but the sectors in which 100% FDI is allowed and sectors in which they are not. As per the law, the UAE cabinet is to form a FDI committee which will suggest the sectors to be included in the ‘positive list’. The final decision on the sectors in the ‘positive list’ will be left to the UAE cabinet. A broad outline or principles has been given for the FDI committee to determine the sectors under positive list. (i) To be in alignment with the overall plans of UAE; (ii) Value addition to UAE economy; (iii) Technology innovation and job opportunities and training for UAE Nationals; (iv)The overall expertise, repute and competency of the FDI firm; (v) Modern te